Keir Starmer and Donald Trump have discussed “productive negotiations” towards a UK-US economic prosperity deal and agreed the talks will “continue at pace”, Downing Street has said.
The call came as the UK seeks an exemption from US tariffs, after the president announced a 25 per cent import tax would be introduced on all cars imported by America.
The measure is expected to hit British luxury carmakers such as Rolls-Royce and Aston Martin, and is on top of a series of reciprocal tariffs set to come into effect on 2 April, which could include a general 20 per cent tax on UK products in response to the rate of VAT.
Some 16.9 per cent of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6 billion.
The prime minister and president spoke by phone for 20 minutes on Sunday night, it is reported, and “agreed to stay in touch in the coming days”.
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In a briefing note released Sunday evening, a No 10 spokesperson said: “The prime minister spoke to president Trump this evening.
“The president opened by wishing His Majesty the King best wishes and good health.
“They discussed the productive negotiations between their respective teams on a UK-US economic prosperity deal, agreeing that these will continue at pace this week.
“Discussing Ukraine, the prime minister updated the president on the productive discussions at the meeting of the Coalition of Willing in Paris this week. The leaders agreed on the need to keep up the collective pressure on Putin.
“They agreed to stay in touch in the coming days.”
Trump has branded 2 April as “Liberation Day” for America, claiming his planned tariffs will reduce reliance on foreign goods and boost the US economy.
Starmer has warned that Britain “reserves the right” to impose reciprocal tariffs if a deal to exempt the UK cannot be reached.
Asked last week whether the UK reserves the right to respond to tariffs during a visit to Yorkshire, the prime minister said: “Yes, of course. Obviously, any tariffs are concerning and we’re working hard with the industries and sectors likely to be impacted.
“None of them want to see a trade war, which is why we’re engaged in discussions with the United States about mitigating the impact of tariffs.
“Now, that’s what we’re working hard on, but in answer to your question, yes – in the end, our national interest has to come first, which means all options are on the table.”
The Office for Budget Responsibility (OBR) has warned that retaliatory tariffs would hurt the UK more than accepting the US levy.
In its assessment of the UK economy, the fiscal watchdog warned a full-blown tariff war with the US could wipe 1 per cent off GDP next year and derail chancellor Rachel Reeves’ hopes of balancing the books, forcing her to implement more cuts or tax hikes.
That “worst-case scenario” would come about if the US imposed 20 per cent tariffs on British goods and the UK reciprocated in kind.
Josh Self is Editor of Politics.co.uk, follow him on Bluesky here.
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Source: Politics
